HONG KONG — Alibaba Group Holding’s delivery affiliate will continue to prioritise growth over profits as it builds the logistics network at the heart of the Chinese e-commerce giant’s global expansion.While Cainiao Smart Logistics Network needs funds to continue its investment in its distribution network, it only wants the backing of investors who endorse its model of incurring short-term losses to build scale, CEO Judy Tong told partners at a conference in Hangzhou.Those losses have prompted a US investigation into why largest shareholder Alibaba does not fully fold the smaller company into its own results. But she said both companies have provided data to prove they have played by the rules.Founded in 2013 by Alibaba and a small group of initial backers that includes trucking companies, Cainiao underpins the commerce giant’s expansion. It is building distribution hubs in remote provinces and around China’s biggest cities including one near Beijing that spans 37 football fields. T...
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